Bidder drops out of Go-Ahead race

An AUSTRALIAn transport group has walked away from the race to buy Go-Ahead – leaving the path clear for a rival bidder to secure a deal.

kelsian said falling share prices in Australia tied its hands and forced the group to walk away from a potential tie-up with its British peer. That paves the way for rival Australian group kinetic and Globalvia of Spain to plough on with their £650m joint bid for Go-Ahead, whose shares fell 2.8pc, or 42p, to 1488p as hopes of a bidding war evaporated. kelsian had tried to muscle in on a deal to buy Go-Ahead, which co-runs the Govia Thameslink Railway, but shares have fallen by more than 15pc in recent weeks. ‘Unfortunately, recent Australian equity markets have been volatile and external events have adversely impacted the kelsian share price,’ a spokesman said.

Go-Ahead said it plans to go ahead with the kinetic and Globalvia deal. The £650m deal will pay shareholders £15 for each share they own in the company.